Reports have confirmed that Matariki Forests has signed a deal with the American Phanous Timber Fund, under which the latter will be investing a whopping $167 Million in the former, subject to the approval of the Overseas Investment Office.

Matariki Forests is currently the sole owner of New Zealand's third largest forest estate, which comprises an area of 140,000 ha.

Due to the ongoing tightness in credit markets, the sale of New Zealand's third-biggest forest estate, worth as much as NZ$1 billion ($653 million), has been scrapped.

It was forwarded by the joint-venture Matariki Forests Ltd, 40 percent owned by U. S. forest group Rayonier, that the owners have decided not to go ahead with the proposed sale of the 140,000 hectare (343,000 acre) estate, though it had attracted immense interest.